Limehouse Software Highlights UK Councils Can Save £1 billion In Hidden Costs
Councils across the country are missing out on annual savings of £1 billion through inefficient document production processes, according to new research from Limehouse Software, an Objective Corporation company and specialist provider of content, collaboration and process management solutions.
Research, conducted across over 2,000 documents from a sample of 134 councils, was undertaken to map activities, costs and resources supporting the conception of documents through to their publication. The findings have identified a huge untapped area for cost savings and performance improvements in the process from initial conception through the collaborative authoring and consultation processes to final publishing of these key documents.
”Given the sheer number of documents – many of which are statutory – that are produced each year by local government, this study aims to highlight where, when and how real savings can be delivered against a backdrop of declining government support grants and increased pressures for substantial operational cost and headcount reduction. In addition, our research suggests business transformation and efficiency programmes, and offer local authorities a ‘new’ means of making savings,” stated Nick Kingsbury, Limehouse Software.
Key findings include:
- £1 billion can be saved from the document production process through improved business processes, design and print
- On average a Tier 1 local authority has 2,566 live and current documents in the public domain; Tier 2 has 1,582
- The average annual production of documents is 988 for a Tier 1 council, made up of a staggering 13,000 pages of new content (610 documents for Tier 2)
- 65% of documents produced by local authorities are of low design standard, meaning that there is little or no structure, formatting or style
Half of all documents produced have no branding whatsoever
- This activity currently costs a Tier 1 local authority over £11 million a year and £2.8 million for a Tier 2
- In terms of hidden savings a Tier 1 authority could save up to £2.6 million by improving business processes; a Tier 2 could make £830,000
- A Tier 1 authority could make up to £290,000 savings as a result of improving the way they use graphic design services, while a Tier 2 could save £169,000
- Improvements in print management can also deliver significant savings – £300,000 for a Tier 1 and £60,000 for a Tier 2
Nick Kingsbury added: “These figures present a very strong case for local authorities to consider revising their document production processes to provide a lucrative and viable option for delivering ‘hidden’ savings,”
“Councils have become experts in managing tight budgets over the years but they are likely to be facing even deeper cuts in the very near future which will extend over a long period of time. We have identified some easy wins through our research which indicates that in document production alone just under £1 billion can be saved across UK councils,” he concluded.
For the past six years Limehouse Software has been providing solutions to local government to support the inception, creation and publication of large, complex documents. Limehouse’s solutions have been used to create more than 15,000 of these, supporting customers throughout the entire document lifecycle, and this has lead to a very good understanding of the diverse work that takes place for every document that is delivered to its audience.
Methodology: calculating savings
Limehouse analysed over 2,000 documents from over 134 councils across the UK as well as detailed research into 33 council websites and what documents are made available. In depth interviews were also conducted with council employees and internal and external experts.
Opportunities for savings
Graphic Design
Graphic design costs are often the highest external cost in the production cycle and fees range from £1,000- £4,000 for cross charging to an internal resource, or up to £3,000 to £10,000 for external services. On this basis a Tier 1 authority is spending upward of £500,000 a year and Tier 2 around £200,000.
Improved business processes can deliver via the creation and maintenance of design templates, major improvements in productivity and cost reduction.
Business Process Improvement
The possible savings in process improvement are derived from the staff costs and hours spent on incumbent processes, in contract to the optimised processes used by Limehouse customers.
Printing Costs
The printing costs have been derived from the following sources:
- Interviews with local authority document owners
- FoI requests
- Internal and external expertise
- Independent printing audits carried out by local authorities themselves
Identified savings Tier One Council
Improving business processes £2.6 m 232 Tier 1 councils
Improving graphic design £290,000
Improving print procurement £300,000
Total saving £3,190,000
Identified savings Tier Two Council
Improving business processes £830,000 201 Tier 2 councils
Improving graphic design £169,000
Improving print procurement £60,000
Total saving £1,030,000
Total savings
232 Tier one x £3,190,000
201 Tier two x £1,030,000
Total £947,110,000
Topics: Britain, collaboration, content, England, Governance, Limehouse Software, map activities, process management, savings, UK, United Kingdom
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